As a trader, you probably have set trading goals. For example, you may want to make 10% a month or 50% a year profits. Or you might want to make $5,000 or $10,000 a month. Our goals tend to focus on results, like how much money we want to make, or something we want to have.
I don’t think this is an effective way for traders to set goals. Here’s why: You actually have no control over how much money you’re going to make trading – at least in the short term.
Unlike other professions where you can work harder or work longer and make more money, trading doesn’t work that way. You could work for 5 hours, or 5 days, trade well, and still lose money that day or that week. You can’t control it or predict it – short term.
But, you do have control over what you do while you trade. So I suggest that you implement goals centered around your behaviors rather than your profit.
Constructing a financial goal, like “I want to make $5,000 a month,” is only wishing. You can probably be more effective using behavior-based goals.
Here are some examples of behavior-based goals:
- I follow my trading plan 100%
- I trade with half of my awareness on the market, and half of my awareness on my internal state – my thoughts, my feelings, and my body sensations. (I do this because I know that the latter is incredibly important for my success.)
- I don’t trade on Fridays because I tend to lose money on Fridays.
Notice these goals are based on behaviors – actions that you have control over.
I suggest you think about your goals as a trader. Maybe you want to add one or two that are based on behavior rather than results. These kinds of goals may help you improve your results.
I hope this is helpful. If you’re finding yourself stuck or continuing to lose money trading, check in with me. Maybe I can help.